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LEGACY Common Myths and Misconceptions
GIVING Misconception: You must have Misconception: I’m too young to
millions to leave a legacy gift start setting up a legacy gift
Legacy giving can be a special part
of an estate plan. A legacy gift is Reality: Many legacy gifts are Reality: Donors of any age can
when a charitable organization made by individuals designating make a legacy gift. If they don’t
receives a sum of money, their RSP/RIF, TFSA or a life have a will (not this author’s
a specific asset or part of the insurance policy. This is very preferred choice), they can still
simple and inexpensive to do.
designate a registered plan such
entire estate. It provides support
to that charity and answers the However, there are implications as an RSP, or FHSA (first home
question, “What legacy would I like and that should be reviewed by an savings account) to a chosen
to leave and be remembered for accountant or tax advisor. cause. TFSAs are also an option.
once I’m gone?” Typically, legacy Even if you are leaving a more It’s never too early to incorporate
giving to others.
gifts are bigger than gifts made modest gift amount in your will,
throughout your lifetime because it’s still a very powerful gift to the
they come from accumulated recipient organization. Gifts of all
wealth not yearly income. The sizes help to fund projects and SUMMARY
most common way these gifts run organizations. Charities rely
are made is through bequests on the collective power of many
made under a will, beneficiary smaller gifts. A smaller legacy gift There are many myths and
designations (RSP/RIF, TFSA) and adds to that pool of funds and lets misconceptions with estate
gifts of securities. charities grow. planning and legacy giving.
The purpose of this article was
to debunk the most common
Myth: Leaving a legacy gift ones. Young or old, wealthy or
means my family will not not, married or single, all need
receive an inheritance
to develop an estate plan so
Reality: Work with an advisor to their assets pass in an orderly
review which assets are needed fashion with minimal burden to
by your family and which may their family. Legacy giving should
be available to go to a charitable simultaneously be reviewed.
cause. Always support your It’s a powerful way to “pay it
family appropriately. However, forward” to someone else. You
charitable gifts reduce your continue to help wonderful
income taxes, and you may find causes, and your estate even
that there is more wealth to go saves some income tax.
around than you first thought.
Money that would otherwise go to
the government in taxes may be
eliminated, leaving more available
for both the family and charity.
